Financial Data and Key Metrics Changes - Revenue for Q1 fiscal 2025 was $189.5 million, a 24% increase from $152.3 million in Q1 fiscal 2024, setting a new first-quarter revenue record for the company [7][20] - Adjusted gross margin for Q1 was 45%, consistent with the same period last year, while GAAP gross margins were 43% [24][25] - Adjusted EBITDA for Q1 was $37 million, flat compared to the previous year, as higher revenue and gross margin were offset by increased R&D and SG&A expenses [25][28] Business Segment Data and Key Metrics Changes - Uncrewed Systems (UxS) segment revenue was $120 million, a 22% increase from $98.2 million in the same quarter last year, driven by strong demand for the Puma franchise and JUMP 20 platforms [14][21] - Loitering Munition Systems (LMS) segment revenue reached $52 million, a 68% increase from $30.9 million in Q1 fiscal 2024, with significant contributions from Switchblade products [11][22] - MacCready Works segment revenue was $17.5 million, a decrease of 24% from $23.2 million in the same quarter last year, impacted by U.S. government delayed approvals [17][22] Market Data and Key Metrics Changes - The company is experiencing strong demand for its autonomous systems, particularly in the defense sector, with a robust pipeline of opportunities both domestically and internationally [10][31] - The U.S. Army's recent $1 billion IDIQ contract is expected to increase funded backlog in the coming quarters [8][30] - The company anticipates continued momentum in international demand for Switchblade and JUMP 20 solutions [31] Company Strategy and Development Direction - The company is focused on expanding production capacity to meet increasing demand, with plans to select an additional manufacturing location for Loitering Munition production [13][80] - The company aims to leverage its strong relationships with the U.S. Department of Defense and international customers to secure additional contracts and orders [10][76] - The strategic emphasis is on innovation in autonomous systems and enhancing manufacturing capabilities to support future growth [17][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance for fiscal 2025, supported by a healthy backlog and strong demand for autonomous solutions [30][31] - The company is optimistic about the potential for additional orders under the new IDIQ contract and expects to see progress payments that will improve cash flow [38][55] - Management highlighted the importance of international sales and the growing pipeline of opportunities, particularly for Switchblade products [72][76] Other Important Information - The company reported a total cash and investments amounting to $103 million at the end of Q1, an increase from $94.3 million at the end of the previous quarter [29] - Free cash flow during the quarter was $23 million, largely due to decreased inventories [29] Q&A Session Summary Question: How should we think about the task order timing and amounts under the IDIQ contract? - Management confirmed that the $1 billion IDIQ contract is expected to contribute to fiscal 2025 guidance, with initial task orders already booked [36][37] Question: Do you expect other releases or tranches during this fiscal year? - Management anticipates multiple additional Switchblade orders throughout the fiscal year, with a robust pipeline of opportunities [42][43] Question: What programs are associated with the $990 million Switchblade IDIQ? - The $990 million IDIQ contract is intended to fulfill various needs, including U.S. Army requirements and potential international sales [48][49] Question: Will the IDIQ contract help facilitate international sales? - Yes, the IDIQ contract is designed to accommodate international sales, improving the speed of the procurement process [74][76] Question: What is the current status of the FMS pipeline for Switchblade? - The company is engaged with over 50 countries, with a growing number of active customers in the pipeline [70][72]

AeroVironment (AVAV) came out with quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $1 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 45.90%. A quarter ago, it was expected that this maker of unmanned aircrafts would post earnings of $0.21 per share when it actually produced earnings of $0.43, delivering a surprise of 104.76%.Over the last four quarte ...

Financial Performance - Q1 FY25 - Revenue for Q1 FY25 reached $189.5 million, a 24% increase compared to Q1 FY24[8] - GAAP Gross Margin for Q1 FY25 was $81.5 million, also a 24% increase year-over-year[8] - Adjusted EBITDA for Q1 FY25 was $37.2 million, in line with the same quarter last year[8] - Non-GAAP EPS (diluted) was $0.89, an 11% decrease compared to last year[8] - Funded Backlog was $372.9 million, a 31% decrease due to contract award timing[8] Segment Performance - Loitering Munition Systems (LMS) segment achieved a first-quarter revenue record of $52 million[5] FY25 Guidance (as of September 4, 2024) - Revenue is projected to be between $790 million and $820 million, representing a 12% increase at the midpoint compared to FY24 revenue of $717 million[20] - Net Income is expected to be between $74 million and $83 million, a 31% increase at the midpoint compared to FY24 net income of $60 million[20] - Adjusted EBITDA is projected to be between $143 million and $153 million, a 16% increase at the midpoint compared to FY24 adjusted EBITDA of $128 million[20] - Earnings Per Share (diluted) is expected to be between $2.61 and $2.92, a 27% increase at the midpoint compared to FY24 EPS of $2.18[20] - Non-GAAP Earnings Per Share (diluted) is projected to be between $3.18 and $3.49, an 11% increase at the midpoint compared to FY24 Non-GAAP EPS of $2.99[20]

Exhibit 99.1 FISCAL 2025 FIRST QUARTER RESULTS AeroVironment Announces Fiscal 2025 First Quarter Results ARLINGTON, VA, September 4, 2024 — AeroVironment, Inc. ("AeroVironment" or the "Company") reported today financial results for the fiscal first quarter ended July 27, 2024. First Quarter Highlights: ● Record first quarter revenue of $189.5 million up 24% year-over-year ● First quarter net income of $21.2 million and adjusted EBITDA of $37.2 million ● In August 2024 awarded U.S. Army Lethal Unmanned Syste ...

Subscribers to Chart of the Week received this commentary on Sunday, September 1.Last week, venture capitalist Y Combinator—the money behind Twitch, DoorDash (DASH), and Dropbox (DBX) – began the backing of Ares Industries, a defense company that builds cruise missiles. Silicon Valley and the military historically go together like oil and water. But follow the money and it makes sense; the aerospace and defense sector are poised for robust growth in the next decade.It’s a troubled topic, but the iShares U.S ...

Core Insights - AeroVironment (AVAV) is expected to report quarterly earnings of $0.61 per share, reflecting a 39% decline year-over-year, while revenues are forecasted to increase by 20.9% to $184.26 million [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' projections [1] - Analysts emphasize the importance of earnings estimate revisions in predicting investor reactions and stock price performance [1] Revenue Projections - Revenue from Contract Services is projected to reach $36.71 million, representing an 11.7% year-over-year increase [2] - Revenue from Product Sales is expected to be $149.67 million, indicating a 25.3% increase from the prior-year quarter [2] Gross Margin Estimates - Gross margin from Contract Services is anticipated to be $9.31 million, up from $7.80 million reported in the same quarter last year [2] - Gross margin from Product Sales is forecasted to reach $64.28 million, compared to $57.86 million in the same quarter last year [3] Stock Performance - AeroVironment shares have returned +8.6% over the past month, outperforming the Zacks S&P 500 composite, which saw a +2.6% change [3] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [3]

Core Viewpoint - AeroVironment, Inc. has secured a significant military contract from the U.S. Army valued at over $1 billion, marking a transformative moment for the company and enhancing its growth outlook [2][4][13] Contract Details - The contract is a record for AeroVironment, as typical military contracts are usually in the millions range, and it is expected to boost the company's growth rate and EBITDA margins towards the 20% range [2][4] - The contract involves providing capabilities to dismounted infantry formations, primarily focusing on the production of the Switchblade drone, which is designed to neutralize targets with minimal collateral damage [4][5] Financial Impact - The contract is anticipated to significantly increase AeroVironment's backlog growth, which has historically been in the millions, thus changing the company's financial trajectory [5] - Management has indicated that current manufacturing levels can support over $500 million in annual product revenue, with plans for further capacity growth due to rising demand for the Switchblade [5][7] Growth Projections - The company is expected to achieve at least 17% growth rates in its top line over the coming years, driven by a stronger backlog and increased demand from allied forces [9][10] - EBITDA margins are projected to expand by at least 1%, indicating a minimum of 20% growth in adjusted EBITDA [9][10] Upcoming Earnings Report - The Q1 FY25 earnings report is anticipated to provide an upgraded outlook from management, with consensus estimates predicting earnings per share of 65 cents on revenues of $188 million, reflecting a year-over-year growth of approximately 23% [11][12] - The market will be closely watching for any updates on the fixed-price component of the $1 billion contract, as AeroVironment was the sole bidder for this deal [12]

The drone maker just won its biggest Army contract ever.AeroVironment (AVAV 14.07%) stock took off like a rocket Wednesday morning, rising by 16.5% through 10:15 a.m. ET, after the Pentagon announced the company's single biggest contract win ever.The news led Tuesday night's press release listing the biggest Defense Department contracts awarded that day: $990 million awarded to AeroVironment "to provide an organic, stand-off capability to dismounted infantry formations capable of destroying tanks, light arm ...

In the latest trading session, AeroVironment (AVAV) closed at $177.76, marking a +0.21% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.16%.Coming into today, shares of the maker of unmanned aircrafts had gained 1.28% in the past month. In that same time, the Aerospace sector gained 2.37%, while the S&P 500 gained 2.97%.The investment community will be p ...

The most recent trading session ended with AeroVironment (AVAV) standing at $189.80, reflecting a -0.34% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 1.39%.Prior to today's trading, shares of the maker of unmanned aircrafts had gained 15.96% over the past month. This has outpaced the Aerospace sector's gain of 5.45% and the S&P 500's loss of 1.85% in t ...